10 Software Stocks Analysts Are Upgrading

5. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 77

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the 10 software stocks analysts are upgrading. On June 12, Loop Capital analyst Mark Schappel upped the price objective on the company’s stock to $155 from $130, while maintaining a “Buy” rating, as reported by The Fly. Loop Capital viewed a demonstration of the company’s AIP product and discussed broader enterprise AI industry trends, competitive dynamics, as well as its differentiators.

The firm remained optimistic about Palantir Technologies Inc. (NASDAQ:PLTR), and believes that it is an early software leader in enterprise AI, which remains at a tipping point with pilot programs moving into production and AI use cases expanding throughout industries. Overall, the firm’s investment thesis stems from 3 critical factors. These include the exposure to early-stage AI market opportunity, seemingly endless potential AI use cases amidst few TAM constraints on growth, and Palantir Technologies Inc. (NASDAQ:PLTR)’s position as a leader in the overall enterprise AI space.

In Q1 2025, the US revenue increased 55% YoY and 13% QoQ to $628 million, with the US commercial revenue increasing 71% YoY and 19% QoQ to $255 million. Palantir Technologies Inc. (NASDAQ:PLTR) closed 139 deals of at least $1 million, 51 deals of at least $5 million, and 31 deals of at least $10 million. Jackson Peak Capital, an investment management firm, released its Q1 2025 investor letter. Here is what the fund said:

“Palantir Technologies Inc. (NASDAQ:PLTR) was a contributor as a long event-driven trade. We held PLTR into and through its Q4 earnings. The thesis was that it would continue its beat and raise cadence and have investors chasing the right tail as management lays out what’s possible under the new administration in DC, announcing new contract wins. It also benefitted from market structure dynamics with institutions underweight and PLTR joining the Nasdaq 100 index in December.”

Palantir Technologies Inc. (NASDAQ:PLTR) is a core player in the broader software industry as it develops and sells enterprise software platforms, mainly for big data integration, AI, and analytics.